Housing Affordability’s Impact

Declining housing affordability continues to be a top concern for builders and other stakeholders in the housing industry. 

“For couples and families of all races and backgrounds, immigrant and native-born, the price of homes is many times what they can afford to pay. However one feels about the merits of homeownership, many Americans who would like to buy a house cannot afford to do so,” wrote Alexander von Hoffman, senior research fellow at Harvard University’s Joint Center for Housing Studies, in a Housing Perspectives blog post titled “The Disappearance of the Moderately Priced Single-Family Home.” 

He goes on to write that the lack of modestly priced single-family homes contributes greatly to what he calls “the homeownership crisis.” Using his hometown Boston as an example, von Hoffman writes that for years now most suburban builders produced houses for the high-end of the market. Simultaneously, starter homes in previous generation neighborhoods disappeared as owners added onto them or demolished them in favor of building more affluent ones. Von Hoffman argues the “only way to increase the supply of moderately priced single-family homes is to build and preserve them.” 

The National Association of Homebuilders lists housing affordability as one of its top priorities. NAHB aims to “explore how to address the housing affordability crisis through federal, state and local advocacy to reduce building costs, increase housing supply and provide diverse housing choices.”  

The NAHB/Wells Fargo Cost of Housing Index is a quarterly analysis of housing costs in the U.S. and specific metropolitan areas. The Index represents the portion of a typical family’s income needed to make a mortgage payment on a median-priced home. Data from Q4 2025, the most recent report available, indicates that a family earning a median income would need 34% of that to cover the mortgage payment on a median-priced home. Low-income families would need to spend 67% of their earnings to pay for the same new home.  

Window + Door’s 2026 Top Manufacturers survey asked about how housing affordability is affecting business. Response was mixed, but those that do feel the effects of it on their businesses offered some insight as to why: 

• “The daily strain on people’s wallets has made them very selective about investing in home improvement or upgrading to a new home.” 
• “Affordability means providing lower costs for our customers. People are looking for lower cost options for their doors, and we are finding ways to service that need. We don't expect that change in the near term.” 
• “Less buyers are willing to purchase homes with the current market, and sellers have less incentive and opportunity to refurbish their home to extract the most value. Therefore, opportunities to replace their windows come to halt. The same can be said for the reduction in new builds.” 

Read more about issues affecting the residential fenestration market in our Top Manufacturers Report and List. 

How is housing affordability impacting your business? I’d love to hear your perspectives, insights and how your company is adapting. My email inbox is always open.